Multi-timeframe analysis - bulls may have upper hand
AUD/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Overwhelmed by the effects of the coronavirus pandemic, demand at 0.6358/0.6839 yielded, scoring seventeen-year lows at 0.5506 ahead of demand pencilled in from 0.5219/0.5426. Recent movement, however, staged a reasonably impressive recovery, reclaiming more than 50% of March’s losses.
With reference to the market’s primary trend, a downtrend has been present since 2011.
Daily timeframe:
Although somewhat lacking conviction, daily candles continue to explore higher ground, registering its fifth daily consecutive gain Thursday and tackling the upper boundary of a demand-turned supply base at 0.5926/0.6062.
Structurally, a break higher has free reign to approach a demand-turned supply at 0.6330/0.6245, which holds within it a 50.0% retracement band at 0.6271.
With reference to the RSI indicator, the value is seen making headway north of 30.00, though has yet to challenge 50.00.
H4 timeframe:
Supply seen at 0.6147/0.6078, garnished with Fibonacci studies around the 0.61ish region, made a showing in recent hours.
From a technical standpoint, the reason behind daily price lacking conviction to the upside likely has something to do with the H4 candles carving out what appears to be a rising wedge pattern (0.5506/0.5963). The pattern’s take-profit target is generally measured by taking the distance of the base and adding it to the breakout point.
H1 timeframe:
Risk currencies latched on to a healthy bid yesterday, largely sponsored by USD downside. Things calmed as we reconnected with familiar supply priced in at 0.6100/0.6063 into US trade. Moves lower from here has the widely watched 0.60 barrier on the radar; a break higher could rejuvenate bids and make a play for the 0.62 handle, having seen limited supply between the current supply and 0.62.
Technical indicators show the RSI working its way out of overbought territory and producing bearish divergence.
Structures of Interest:
In view of analysed charts, research has buyers perhaps leading the way right now. With room to move higher on the monthly chart, daily flow seen attacking the top edge of a demand-turned supply at 0.5926/0.6062 and H1 bears exhibiting a somewhat indifferent tone at the underside of supply from 0.6100/0.6063, a break of 0.61 is likely in store. Whether enough to validate a bullish bias, though, is, of course, trader dependent. Entering long above 0.61 still faces opposition from H4 supply at 0.6147/0.6078 and possibly the upper boundary of the H4 rising wedge formation.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Overwhelmed by the effects of the coronavirus pandemic, demand at 0.6358/0.6839 yielded, scoring seventeen-year lows at 0.5506 ahead of demand pencilled in from 0.5219/0.5426. Recent movement, however, staged a reasonably impressive recovery, reclaiming more than 50% of March’s losses.
With reference to the market’s primary trend, a downtrend has been present since 2011.
Daily timeframe:
Although somewhat lacking conviction, daily candles continue to explore higher ground, registering its fifth daily consecutive gain Thursday and tackling the upper boundary of a demand-turned supply base at 0.5926/0.6062.
Structurally, a break higher has free reign to approach a demand-turned supply at 0.6330/0.6245, which holds within it a 50.0% retracement band at 0.6271.
With reference to the RSI indicator, the value is seen making headway north of 30.00, though has yet to challenge 50.00.
H4 timeframe:
Supply seen at 0.6147/0.6078, garnished with Fibonacci studies around the 0.61ish region, made a showing in recent hours.
From a technical standpoint, the reason behind daily price lacking conviction to the upside likely has something to do with the H4 candles carving out what appears to be a rising wedge pattern (0.5506/0.5963). The pattern’s take-profit target is generally measured by taking the distance of the base and adding it to the breakout point.
H1 timeframe:
Risk currencies latched on to a healthy bid yesterday, largely sponsored by USD downside. Things calmed as we reconnected with familiar supply priced in at 0.6100/0.6063 into US trade. Moves lower from here has the widely watched 0.60 barrier on the radar; a break higher could rejuvenate bids and make a play for the 0.62 handle, having seen limited supply between the current supply and 0.62.
Technical indicators show the RSI working its way out of overbought territory and producing bearish divergence.
Structures of Interest:
In view of analysed charts, research has buyers perhaps leading the way right now. With room to move higher on the monthly chart, daily flow seen attacking the top edge of a demand-turned supply at 0.5926/0.6062 and H1 bears exhibiting a somewhat indifferent tone at the underside of supply from 0.6100/0.6063, a break of 0.61 is likely in store. Whether enough to validate a bullish bias, though, is, of course, trader dependent. Entering long above 0.61 still faces opposition from H4 supply at 0.6147/0.6078 and possibly the upper boundary of the H4 rising wedge formation.